Latin American real estate is a burgeoning industry that real estate investors would be foolish to ignore. Although investing in foreign real estate is subject to some adversities such as market risk, currency risk, and elevated fees, the benefits of property in Latin America are desirable. Foreign investors, for example, can enjoy less stringent tax requirements, asset diversification, and exchange rate advantages. Read on to learn about the advantages of investing in real estate in Latin America and gain insights on the best countries to invest in real estate in this past year.

How To Invest In Latin American & South American Real Estate

Investing in Latin American real estate has become increasingly accessible, especially with familiar national and multinational real estate service companies providing access to markets across Latin America. According to an interview with Latin America Real Estate Index co-founder and regional expert Jamie Anderson, there are three main differences between the U.S. and Latin American markets that investors should pay close attention to. First, the Latin American region is still considered to be in its early stages of the real estate cycle. The U.S. market is at a market cap of about 1 trillion dollars, while Latin America is 75 billion dollars. From a growth and development standpoint, its profile can be compared to that of the U.S. in the early-to-mid-1980’s. About 150 publicly listed real estate companies are trading almost 1 billion dollars’ worth of real estate deals weekly, and the market is just starting to heat up.

While the U.S. enjoys a diversified pool of investors, the global investing community remains relatively underexposed to local real estate opportunities in Latin America. The leading investors in the region are companies, such as local pension funds or insurance companies. However, this is expected to change rapidly as foreign investors have started to flock south of American borders. One of the main attributes making Latin American real estate so attractive to investors right now is the yield rates it offers, relative to other markets. For example, in the U.S., the average yields range between 4 to 6 percent, compared to the vast 6 to 12 percent range in Latin America. For example, the Brazilian real estate market features high interest rates yet very high yields. In Mexico, the Peso has taken a beating over the last few years, allowing foreign investors to take advantage of the exchange rate.

[ Thinking about investing in real estate? Learn how to get started by registering to attend a FREE online real estate class from expert real estate investors. ]

Benefits Of Buying Property In Latin America

In addition to some of the economic factors mentioned earlier, foreigners are flocking to Central and South America for practical reasons, making real estate investing all the more alluring. Here are the top benefits of investing in property in Latin America:

First, the tropical beaches, warm weather, and rich cultures are undeniably attractive features of the various countries. Each nation has to offer a rich culture, a dynamic economy, adventure and experiences, and a different way of life that attracts tourists and expatriates. Generally, real estate investors will enjoy a lower cost of living, lower rents, and affordable healthcare, making real estate investing attractive. Compared to many Latin American countries, the dollar is also strong in value, allowing for great real estate deals and comparatively cheaper salaries if any contractors or workers need to be hired. Finally, many Latin American markets offer the same protections to foreign investors as their own citizens.

Top 5 Latin American Real Estate Markets 2021 & 2022

Latin American countries can be great places to invest, but some countries offer more favorable circumstances for investors than others. Check out some of the best countries to invest in real estate that you should be paying attention to this year.

Top 8 Latin American Real Estate Markets 2020

Latin American real estate has provided savvy investors with unique opportunities for decades; however, several markets made 2020 even more promising. A successful real estate deal hinges on thorough market analysis, and buying a property in Latin America is no different. Review both the benefits and the challenges of the best Latin American real estate markets of 2020:

Top 4 Latin American Real Estate Markets 2018

The 2018 Latin American real estate market made great strides in order to catch up with the rest of the world’s leading markets.  Four markets, in particular, were responsible ushering in a new period of growth and prosperity for a market that has otherwise been held in check by political turmoil for far too long:

These four countries are at the forefront of a real estate movement that investors may not want to miss out on. Chile, for example, has done its best to attract foreign investors for quite some time. The country passed Decree-Law 600, which entitles foreign investors to the same benefits as native citizens. As a result, U.S. investors interested in Chilean real estate may be subject to lower tax rates, making an already attractive market more interesting. On the other hand, Colombia maintains a strong link to the United States, landing it at the top of the list for many U.S. investors. Not only that, but Colombia also boasts one of the region’s best corporate income tax rates—second only to Chile.

However, the biggest thing driving international real state is the growing emphasis on a global economy. As capital movement across borders faces fewer artificial barriers, not unlike Chile’s Decree Law 600, the gap between U.S. real estate investors and promising marketplaces across the globe will shrink.

Summary

An examination of property in Latin America should, if anything, show that the region boasts a large number of dynamic economies and rich cultures. There are numerous factors for real estate investors to benefit from, including the potential protections offered to foreign citizens. If you are interested in real estate investments abroad or perhaps already located in the region, the above markets should serve as a great jumping-off point. Latin America is certainly proving to be home to some of the best countries to invest in real estate. Investors of all skill levels would be wise to keep an eye on this burgeoning region.

Ready to start taking advantage of the current opportunities in the real estate market?

Maybe you have plenty of capital, an extensive real estate network or great construction skills— but you still aren't sure how to find opportunistic deals. Our new online real estate class, hosted by expert investor Than Merrill, can help you learn how to acquire the best properties and find success in real estate.

Register for our FREE 1-Day Real Estate Webinar and get started learning how to invest in today's real estate market!